Germany

Siemens wind business records 35% revenue rise

GERMANY: Siemens' revenues for its wind business were up by 35% for the fourth quarter of the firm's financial year.

Siemens’ wind turbine business achieved revenues of €1,471 million for Q4 2012, compared to just €1,090 for the same period last year.

Profits were also up, from €124 million in Q4 2011 to €134 million this year, despite higher expenses for R&D, marketing and selling associated with business expansion.

These profits, along with those made by Siemens’ fossil fuels generation business, helped make up for the €151 million in combined losses suffered by the Energy division’s Oil & Gas and Electricity Transmission businesses.

Siemens’ results statement claimed all three of the wind business’ reporting regions contributed to the revenue increase, with growth in the Americas supported strongly by positive currency exchange effects.

However, the value of new orders fell slightly from last year’s Q4 figure of €2,330 million to €2,305 million this year. This was partly blamed on orders in the Americas region "nearly ceasing" due to the expected expiration of tax incentives in the US.

Siemens expects challenging market conditions, including substantial pricing pressure, to continue for its wind business in coming quarters.

Problems with supply of grid connections for German North Sea offshore wind projects have burdened Siemens with additional costs of €570m in the fiscal year to 30 September 2012. In Q4 alone, these costs amounted to €67m, he said.

Additionally, the company said it was looking at cutting its manufacturing capacity in the US as a result of uncertainty arising from the expiration of the production tax credit.

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